Axis Bank, India’s third largest private lender by market capitalisation reported 18 per cent year-on-year(y-o-y) growth in its net profit to Rs. 1,667 crore for the quarter ended June 2014 on account of lower provisioning.
The bank’s net interest income (interest earned over interest expended) grew 16 per cent y-o-y to Rs. 3,310 crore in Q1 of FY15.
Analysts polled had estimated its net profit at Rs. 1,655 crore whereas its net interest income was seen growing to Rs. 3,252 crore.
Axis Bank’s net profit was partially boosted by lower provisions. Its provisions for bad loans reduced drastically to Rs. 386.6 crore in April-June quarter against Rs. 712.25 crore in the same quarter last fiscal.
Bad loans of Axis Bank, which is represented by non-performing assets rose significantly in this quarter. Its gross non-performing assets as percentage of total assets increased to 1.34 per cent against 1.22 per cent last quarter and its net non-performing assets rose to 0.44 per cent sequentially against 0.40 per cent.
Axis Bank shares closed 0.27 per cent lower at Rs. 2,017.60 compared to 1.09 per cent gain in Nifty.